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Devolution

Does Nicola Sturgeon’s refusal to increase the Additional Rate of Income Tax to 50p unless it is increased in the rest of the UK undermine the case for tax devolution? David Eiser argues that there were always going to be constraints on the exercise of devolved powers and incumbent governments have to decide how these relate to the wider policy context.

So the fiscal framework has been agreed. Or has the can just been kicked down the road? Both interpretations are consistent with last week’s last-minute agreement between the Scottish and UK governments. There is now no significant obstacle to the passage of the Scotland Bill. As a result the Scottish Parliament will take control over the setting of the rates and bands of income tax from 2017 and a raft of welfare powers will be introduced when the administrative arrangements can be made.

It has taken the Scottish Conservatives a long time to adjust to life in post-devolution Scotland. In particular, one question has overshadowed and constrained the party’s thinking: what is the appropriate Conservative response to the Scottish Parliament? The Scottish Conservatives arrived at a definitive answer only in 2014.

The decision by the Secretary of State for Wales to pause the legislative process for the Wales Bill not only makes constitutional sense but, say Huw Pritchard and Lleu Williams of the Wales Governance Centre, it’s good politics.

The Secretary of State for Wales, Stephen Crabb, promised to make “significant changes” to the Draft Wales Bill, a promise that has been warmly welcomed by many commentators.

"The UK and Scottish Governments have so far failed to agree the new 'fiscal framework' that must accompany the transfer of tax and welfare powers recommended by the Smith Commission and set out in the Scotland Bill. Perhaps the biggest bone of contention is how to adjust Scotland’s block grant to reflect the associated transfer of tax revenues and welfare spending to the Scottish Government. With another 'deadline' for an agreement looming, this observation aims to analys the proposals put forward by each government, including a recent 'compromise' put forward by the UK government.

The negotiations around adjustments to Scotland's block grant have been the subject of months of talks between the Scottish and UK governments. David Bell, David Eiser and David Phillips set out the main points of contention in this extended blog.

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